How many HIPS needed?

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    How many HIPS needed?

    Selling a detached house, converted into 3 leasehold flats. If sell as one unit, would one hip on the entire house suffice or do I need three (one for each flat)?
    Having three would seem to be a duplication - except that the energy assessment could theoretically be different - depending on type of light bulbs etc.
    ASSUME NOTHING - QUESTION EVERYTHING!

    #2
    Originally posted by Paragon View Post
    Selling a detached house, converted into 3 leasehold flats. If sell as one unit, would one hip on the entire house suffice or do I need three (one for each flat)?
    Having three would seem to be a duplication - except that the energy assessment could theoretically be different - depending on type of light bulbs etc.
    See Part 5 of Housing Act 2004.
    S.148(1): "Residential property" consisits of dwellinghouse; "dwellinghouse" means building or part of building occupied (or to be occupied) as a separate dwelling.
    s.171: A sub-divided building is treated as one dwellinghouse even if only part has vacant possession (but at least one part is not available for sale on its own) as long it's as marketed as single property.

    So your sale is one building; s.171 applies; therefore only one HIP.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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      #3
      Many thanks Jeffrey.
      ASSUME NOTHING - QUESTION EVERYTHING!

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        #4
        Are any of them currently tenanted? If so may not require a HIP

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          #5
          Originally posted by Kingmonkey77 View Post
          Are any of them currently tenanted? If so may not require a HIP
          I think that s.171's meaning is: the "no HIP if it's not vacant" rule will not apply where part's vacant and part's not. In that case, it's counted as one building; so one HIP is needed, but not more than that.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

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            #6
            Yep I reckon your right Jeffrey, so long as it's one sale only and not two or three different buyers i.e. all three flats sold as a "portfolio". Remember all the flats will need separate EPCs if and when the tenancies change.

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